Hundreds of millions of pounds cash aid sent to EU but they aren't saying what it's spent on

Tuesday 11 December 2012 08:44 BST

The new Transport Secretary Justine Greening arrives at the Department for Transport in London to take up her post. PRESS ASSOCIATION Photo. Picture date: Saturday October 15, 2011. Greening replaced Philip Hammond who became the Defence Secretary, after the resignation of Liam Fox yesterday as fresh allegations emerged about his involvement in securing funding for self-styled "adviser" and lobbyist Adam Werritty. See PA story POLITICS Fox Greening. Photo credit should read: Ian Nicholson/PA Wire

Hundreds of millions of pounds of UK taxpayers' money is being channelled into European Union aid projects without proper assurances that it is being spent effectively, an independent watchdog has found.

Britain contributes around £1.4 billion a
year to EU aid spending - accounting for 16% of the Department for
International Development's (Dfid) aid budget.

However, the Independent Commission for
Aid Impact (ICAI) - set up by the coalition to ensure the aid budget was
delivering value for money - said Dfid had only limited oversight over the
expenditure.

It strongly criticised the EU for weak
management, slow decision-making and over-ambitious plans.

On its traffic light rating system it
assessed Dfid's oversight as amber-red - meaning that it offered relatively
poor value for money and that significant improvements were required.

"There is no effective performance
management system in place for EU aid, which limits Dfid's oversight," the
commission said.

"The EU's performance management and
results framework are weak. As a result, Dfid is not getting the assurance it
needs and that it achieves elsewhere, for example from the World Bank.

"Slow decision-making and processes
hamper the delivery of results. Limitations to the EU's risk management
approach, as well as over-ambitious project plans, are a significant obstacle
to improving the performance of its programmes and projects."

The report is likely to heighten concerns
among Tory MPs that the overseas aid budget continues to be protected at a time
when other Government departments are facing real-terms cuts.

ICAI chief commissioner Graham Ward said:
"Despite making good headway in influencing EU aid policy, Dfid needs to
push the EU for a better account of where taxpayers' money is going and to
engage further with EU projects and programmes at a country level to ensure
that it is spent to the best effect."

Dfid said the EU needed to "raise its
game" and that International Development Secretary Justine Greening was
pressing Brussels institutions and other member states to improve performance
and results.

"Nothing in the EU happens overnight
but we are determined to get better value for money on behalf of the British
taxpayer," a spokesman said.